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Illegal Villa Complex in Canggu, North Kuta

14-Unit Club Residence Canggu Cited by Badung Authorities as Illegal Development.

(10/29/2012) Badung Enforcement Officials (Satpol PP Badung) recently descended on the construction site of the Club Residence Canggu in Tibubeneng Village, North Kuta to forcibly halt the ongoing construction of that multi-townhouse development.

As reported by DenPost on October 15, 2012, officials seized and hauled off construction site equipment and issued a summons for the owner of the project to report to their offices.

According to the head of Satpol PP Badung, I Ketut Martha, his officers visited the construction site to confirm that the 14-unit housing development lacked the mandatory building permit (IMB). "We asked the developer to halt construction until an IMB was issued," said Martha.

Previously, based on reports sent to by local residents to Satpol PP Badung, two formal written warnings were issued by the regency calling for a stop on construction at the Club Residence Canggu. Those written warning have apparently been ignored.

Martha blamed the consultants involved in villa, hotel and housing developments for failing to process in a timely and correct manner the various principle permissions, environmental permits, environmental impact studies and building permits needed to build in Bali. When owners are called to his office to respond to summons, they typically reply by saying they did not understand the regulations and had been misinformed by their project consultant.

Martha called on all construction projects to post the required sign at the front of their project site listing the name of the developer and the details of the IMB needed to commence construction on a project.

In lieau of the required signboard with details of the projects licenses and IMB number, The Club Residence Canggu has a roadside billboard offering 3 bedroom units with private swimming pools on a “freehold” basis. (See image: DenPost)

The same billboard proclaims that many of the units under construction have already been sold, despite the units apparent lack of legal standing.

Also, that the units are being offered on a “freehold” basis remains legally dubious. Quite simply, “freehold” for foreigners does not exist under Indonesian law. While Indonesian nationals may purchase property on an equivalent “hak milik” basis, the presentation of that option in English could be interpreted to presuppose that that foreign nationals are being offered property ownership under legal structure that is strictly unavailable to them in Indonesia on what, according to local press reports, remains an illegal property development.

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